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Just did a post about a survey on this & it is buyer cannot get financing. Gene Mundt just got interviewed about the app to crash ratio.
I haven't had but one fail in several years... and that one failed over inspections.
The one that hurt the most was a big luxury store deal in Beverly Hills. Everything was done, the designer flew in from Japan to OK the deal, the money was in the trust account ready to be disbursed...the last hurdle was the Feng Shui master who flew in from San Francisco to check out the location...decided the wind blew the wrong way....
I bought every book on Feng Shui that day and read everyone of them in less than a month...never had a Feng Shui encounter after that, although I learned a lot. A
Paul S. Henderson, REALTOR®, Broker, Tacoma Washington About 3 years ago, I lost one when the buyer's wife was deported back to India because her job was eliminated which voided her H-1B visa.
(Really strange, when you consider the millions of illegals in the US for years without being deported.)
Toms River, NJ
2. Bubba inspection services
3. Buyer remorse
Candice A. Donofrio
Fort Mohave, AZ
I had to stop and think about failed transactions, which I suppose is a good thing. One buyer fell out because the house was in much worse shape than it initially appeared and one seller fell out of its first contract (2nd one came along quickly) because the buyer got cold feet.
Candice A. Donofrio
Fort Mohave, AZ
I'm thrilled that I'm trying to remember the failed transactions... ;) I do know that the biggest challenge to overcome is typically inspections. Old does NOT mean broken is my repetitive mantra in this areana!
It is not a number that I track but financing seems to ring a bell right now.
Thankfully they have been rare, but had 1 appraisal issue 2 years ago, and 2 properties (same buyer) with easement issues
I am dealing with a deal closing next week and agent just called and said mortgage company will probably not do the loan.
Overwhelming issues cropping up from a home inspection that are not negotiated away.
I don't have a lot of failures but probably financing has been the biggest.
Inspections for me - and only for huge surprises. At least that happens really early in the transaction time frame and we can move on.
I don't have them fail often but when it does it usually is a financing or underwriting issue.
Most of those can be worked around, but if the buyer has second thoughts it is easy to let these other issues become roadblocks.
It's been some time since I've had one fall through. I think the last one was because the buyers found something they liked better.
I haven't had a transaction fail in quite a while, which is a good thing... but the last sale did not firm up because what the lawyer discovered during a review of the Status Certificate for a condo townhome. There was a Special Assessment levied for the ocmplex to each unit onwer which was not disclosed by the Seller, and he was not willing to pay it.
Paul S. Henderson, REALTOR®, Broker, Tacoma Washington - if any one party is not on top of the activities related to the transaction - it can fail!
Thinking they ain't got their money worth.
Egos and agents who can't manage their clients or don't know how to talk to them.
I sweat out the appraisal stage...all else is predictable
Financing. Wish the preapproval letter had some weight on it. That is why it is so important to work with a reputable and experienced agent.
Paul S. Henderson, REALTOR®, Broker, Tacoma Washington The underwriter.
Most of my houses are new with 800 credit score investors but on existing it would have to be inspection.
Right now.... APPRAISALS!!!!
It's probably inspection issues as number 1.
Lack of communication about potential bumps in the road is the largest culprit!
In our market low appraisals.
Property condition issues exceeding buyer threshold of pain and sellers willingness or ability to correct.
The number one reason for any of my transactions failing is because of financing. More specifically, the buyers got "pre-approved" and used one of the large, national financial institutions.
I've had 3 horrible experiences with two of the big banks and would highly recommend that buyers go with a local lender whenever possible.
The top 2 are inspections and mortgage rejection. By inspecting the home before listing and having the seller take care of things before showing, we can elimintae most items except what can not be seen such as well, septic or a hidden defect. With the mortgage aspect, having buyers be pre approved can reduce the rejections
I tell buyers that there are three reasons that transactions fail.
- Loan Approval,
- Homes Inspection
- Buyer's Remorse.
I would say that over 90% fail for one of these three reasons and in that order. The Realtor can help but only to a certain point.
when I was active, it was RARE that a transaction failed.... rare...
I have not tracked this information.
Number one appraisal number two inspections.
Peter Mohylsky nailed this one!